[Congressional Record Volume 170, Number 119 (Tuesday, July 23, 2024)]
[Senate]
[Pages S5261-S5262]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3003. Mr. WARNER (for himself, Mr. Rounds, Mr. Reed, and Mr. 
Romney) submitted an amendment intended to be proposed by him to the 
bill S. 4638, to authorize appropriations for fiscal year 2025 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. TERRORIST FINANCING PREVENTION.

       (a) Definitions.--In this section:
       (1) Digital asset.--Except as provided by the Secretary by 
     rule, the term ``digital asset'' means any digital 
     representation of value that is recorded on a 
     cryptographically secured distributed ledger or any similar 
     technology.
       (2) Foreign digital asset platform.--The term ``foreign 
     digital asset platform'' means any foreign person or group of 
     foreign persons that, as determined by the Secretary, engages 
     in facilitating the exchange, purchase, sale, custody, 
     transfer, issuance, or lending of digital assets.
       (3) Foreign financial institution.--The term ``foreign 
     financial institution'' has the meaning given that term under 
     section 561.308 of title 31, Code of Federal Regulations.
       (4) Foreign person.--The term ``foreign person'' means an 
     individual or entity that is not a United States person.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (6) Specially designated global terrorist; specially 
     designated global terrorist organization.--The terms 
     ``specially designated global terrorist'' and ``specially 
     designated global terrorist organization'' mean an individual 
     or organization, respectively, that has been designated as a 
     specially designated global terrorist by the Secretary of 
     State, pursuant to Executive Order 13224 (50 U.S.C. 1701 
     note; relating to blocking property and prohibiting 
     transactions with persons who commit, threaten to commit, or 
     support terrorism).
       (7) United states person.--The term ``United States 
     person'' means--
       (A) an individual who is a United States citizen or an 
     alien lawfully admitted for permanent residence to the United 
     States;
       (B) an entity organized under the laws of the United States 
     or any jurisdiction within the United States, including a 
     foreign branch of such an entity; or
       (C) any person in the United States.
       (8) Hamas.--The term ``Hamas'' means--
       (A) the entity known as Hamas and designated by the 
     Secretary of State as a foreign terrorist organization 
     pursuant to section 219 of the Immigration and Nationality 
     Act (8 U.S.C. 1189); or
       (B) any foreign person identified as an agent or 
     instrumentality of Hamas on the list of specially designated 
     nationals and blocked persons maintained by the Office of 
     Foreign Asset Control of the Department of the Treasury, the 
     property or interests in property of which are blocked 
     pursuant to the International Emergency Economic Powers Act 
     (50 U.S.C. 1701 et seq.).
       (9) Palestine islamic jihad.--The term ``Palestine Islamic 
     Jihad'' means--
       (A) the entity known as Palestine Islamic Jihad and 
     designated by the Secretary of State as a foreign terrorist 
     organization pursuant to section 219 of the Immigration and 
     Nationality Act (8 U.S.C. 1189); or
       (B) any foreign person identified as an agent or 
     instrumentality of Palestine Islamic Jihad on the list of 
     specially designated nationals and blocked persons maintained 
     by the Office of Foreign Asset Control of the Department of 
     the Treasury, the property or interests in property of which 
     are blocked pursuant to the International Emergency Economic 
     Powers Act (50 U.S.C. 1701 et seq.).
       (10) Yemeni houthi.--The term ``Yemeni Houthi'' means--
       (A) the entity known as Houthi or Ansarallah and designated 
     by the Secretary of State as a specially designated global 
     terrorist organization; or
       (B) any foreign person identified as an agent or 
     instrumentality of Houthi or Ansarallah on the list of 
     specially designated nationals and blocked persons maintained 
     by the Office of Foreign Asset Control of the Department of 
     the Treasury, the property or interests in property of which 
     are blocked pursuant to the International Emergency Economic 
     Powers Act (50 U.S.C. 1701 et seq.).
       (b) Sanctions With Respect to Foreign Financial 
     Institutions and Foreign Digital Asset Platforms That Engage 
     in Certain Transactions.--
       (1) Mandatory identification.--Not later than 60 days after 
     the date of enactment of this Act, and periodically 
     thereafter, the Secretary, in consultation with the Secretary 
     of State, shall, to the fullest extent possible, identify and 
     submit to the President a report identifying any foreign 
     financial institution or foreign digital asset platform that 
     has knowingly--
       (A) facilitated a significant transaction with--
       (i) the Islamic Revolutionary Guards Corps;
       (ii) Hamas;
       (iii) Palestinian Islamic Jihad;
       (iv) Yemeni Houthis;
       (v) any person identified as a specially designated global 
     terrorist on the list of specially designated nationals and 
     blocked persons maintained by the Office of Foreign Assets 
     Control of the Department of the Treasury and the property 
     and interests in property of which are blocked pursuant to 
     the International Emergency Economic Powers Act (50 U.S.C. 
     1701 et seq.);
       (vi) a specially designated global terrorist organization; 
     or
       (vii) a person identified on the list of specially 
     designated nationals and blocked persons maintained by the 
     Office of Foreign Assets Control of the Department of the 
     Treasury, the property and interests in property of which are 
     blocked pursuant to the International Emergency Economic 
     Powers Act (50 U.S.C. 1701 et seq.) for acting on behalf of 
     or at the direction of, or being owned or controlled by, a 
     foreign terrorist organization or a specially designated 
     global terrorist organization; or
       (B) engaged in money laundering to carry out an activity 
     described in subparagraph (A).
       (2) Imposition of sanctions with respect to a foreign 
     financial institution or foreign digital asset platform.--The 
     President may impose 1 or more of the sanctions described in 
     paragraph (3) with respect to a foreign financial institution 
     or foreign digital asset platform identified under paragraph 
     (1).
       (3) Sanctions described.--
       (A) Blocking of property, digital assets, and related 
     technologies.--The President may, pursuant to the 
     International Emergency Economic Powers Act (50 U.S.C. 1701 
     et seq.), block and prohibit all transactions in all property 
     and interests in property of the foreign financial 
     institution or foreign digital asset platform if such 
     property and interests in property are in the United States, 
     come within the United States, or are or come within the 
     possession or control of a United States person.
       (B) Restrictions on providing accounts.--The President may 
     prohibit, or impose conditions on, the opening or maintaining 
     in the United States of an operational or business account at 
     a financial institution by the foreign financial institution 
     or foreign digital asset platform.
       (C) Inclusion on entity list.--The President may include 
     the foreign financial institution or foreign digital asset 
     platform on the Entity List maintained by the Bureau of 
     Industry and Security of the Department of Commerce and set 
     forth in Supplement No. 4 to part 744 of title 15, Code of 
     Federal Regulations, for activities contrary to the national 
     security or foreign policy interests of the United States.
       (D) Loans from united states financial institutions.--The 
     President may prohibit any United States financial 
     institution from making loans or providing credits to the 
     foreign financial institution or foreign digital asset 
     platform in an amount totaling more than $10,000,000 in any 
     12-month period unless the foreign financial institution or 
     foreign digital asset platform is engaged in activities to 
     relieve human suffering and the loans or credits are provided 
     for such activities.
       (E) Procurement sanction.--The United States Government may 
     not procure, or enter into any contract for the procurement 
     of, any goods or services from the foreign financial 
     institution or foreign digital asset platform.
       (F) Foreign exchange.--The President may, pursuant to such 
     regulations as the President may prescribe, prohibit any 
     transactions in foreign exchange that are subject to the 
     jurisdiction of the United States and in which the foreign 
     financial institution or foreign digital asset platform has 
     any interest.
       (G) Financial institution transactions.--The President may, 
     pursuant to such regulations as the President may prescribe, 
     prohibit any transfers of credit or payments between 
     financial institutions or by, through, or to any financial 
     institution, to the extent that such transfers or payments 
     are subject to the jurisdiction of the United States and 
     involve any interest of the foreign financial institution or 
     foreign digital asset platform.
       (H) Ban on investment in platform.--The President may, 
     pursuant to such regulations or guidelines as the President 
     may prescribe, prohibit any United States person from 
     investing in or purchasing significant amounts of equity or 
     debt instruments of the foreign financial institution or 
     foreign digital asset platform, or from investing in or 
     purchasing significant amounts of any digital assets

[[Page S5262]]

     issued by the foreign financial institution or foreign 
     digital asset platform.
       (I) Sanctions on principal executive officers.--The 
     President may impose on the principal executive officer or 
     officers of the foreign financial institution or foreign 
     digital asset platform, or on individuals performing similar 
     functions and with similar authorities as such officer or 
     officers, any of the sanctions under this paragraph.
       (4) Implementation and penalties.--
       (A) Implementation.--The President may exercise all 
     authorities provided under sections 203 and 205 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1702, 
     1704) to the extent necessary to carry out this subsection.
       (B) Penalties.--The penalties set forth in subsections (b) 
     and (c) of section 206 of the International Emergency 
     Economic Powers Act (50 U.S.C. 1705) shall apply to a person 
     that violates, attempts to violate, conspires to violate, or 
     causes a violation of regulations prescribed under this 
     section to the same extent that such penalties apply to a 
     person that commits an unlawful act described in subsection 
     (a) of such section 206.
       (5) Waiver for national security.--The President may waive 
     the imposition of sanctions under this subsection with 
     respect to a person if the President--
       (A) determines that such a waiver is in the national 
     interests of the United States; and
       (B) submits to Congress a notification of the waiver and 
     the reasons for the waiver.
       (6) Exceptions.--
       (A) Intelligence activities.--This subsection shall not 
     apply with respect to any activity subject to the reporting 
     requirements under title V of the National Security Act of 
     1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence 
     activities of the United States.
       (B) Law enforcement activities.--Sanctions under this 
     section shall not apply with respect to any authorized law 
     enforcement activities of the United States.
       (C) United states government activities.--Nothing this 
     subsection shall prohibit transactions for the conduct of the 
     official business of the Federal Government by employees, 
     grantees, or contractors thereof.
       (7) Rule of construction.--Nothing in this subsection shall 
     be construed to authorize the imposition of any sanction 
     pursuant to paragraph (2) on a United States person.
       (c) Special Measures for Modern Threats.--Section 5318A of 
     title 31, United States Code, is amended--
       (1) in subsection (a)(2)(C), by striking ``subsection 
     (b)(5)'' and inserting ``paragraphs (5) and (6) of subsection 
     (b)''; and
       (2) in subsection (b)--
       (A) in paragraph (5), by striking ``for or on behalf of a 
     foreign banking institution''; and
       (B) by adding at the end the following:
       ``(6) Prohibitions or conditions on certain transmittals of 
     funds.--If the Secretary finds a jurisdiction outside of the 
     United States, 1 or more financial institutions operating 
     outside of the United States, 1 or more types of accounts 
     within, or involving, a jurisdiction outside of the United 
     States, or 1 or more classes of transactions within, or 
     involving, a jurisdiction outside of the United States to be 
     of primary money laundering concern with respect to terrorist 
     financing, the Secretary, in consultation with the Secretary 
     of State, the Attorney General, and the Chairman of the Board 
     of Governors of the Federal Reserve System, may prohibit, or 
     impose conditions upon, certain transmittals of funds (as 
     such term may be defined by the Secretary in a special 
     measure issuance, by regulation, or as otherwise permitted by 
     law), to or from any domestic financial institution or 
     domestic financial agency if such transmittal of funds 
     involves any such jurisdiction, institution, type of account, 
     class of transaction, or type of account.''.
       (d) Funding.--There is authorized to be appropriated to the 
     Secretary such funds as are necessary to carry out the 
     purposes of this section.
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